Public Wage Hike

Ghana's wages commission announced on March 28, 2010, that it had approved a 10% pay rise for public sector workers. While the wage hike shows that the authorities are rightfully concerned about pay equality, it poses upside risks to the budget deficit and this will be of concern to investors, especially given Ghana's recent history of fiscal profligacy. Furthermore, the news reinforces our concerns over the fiscal deficit and inflation. Already, we had been forecasting a higher budget shortfall this year, owing to the single spine pay policy as well as heavy spending on

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